BAKU, Azerbaijan, July 6. In an interview with Trend News Agency, Yuriy Gordok, Managing Director of Philip Morris International for the Caucasus Region, spoke about the transformation of the smoke-free alternatives market, the principles of science-based regulation, protecting minors from access to nicotine products, and why PMI chose Baku to host its international Technovation forum.
On the Role of the Caucasus and Market Transformation
The Caucasus is undergoing a profound transformation, moving
toward what once seemed an unimaginable future. We have been
investing in the region for more than twenty years, and about ten
years ago we introduced the world's first product in its category
here. At the same time, the Caucasus is not an isolated case.
The number of countries making rapid progress in tobacco harm
reduction—embracing scientifically substantiated alternatives,
recognizing the differences between these products and conventional
cigarettes, and developing appropriate public policy—is growing
around the world. This trend is inevitable and increasingly
evident, including here in the Caucasus.
Azerbaijan is developing at an extraordinary pace. Looking at what the country has achieved over the past decade is truly impressive: the transformation of its economy, rapid digitalization, and its emergence as a strategic connector not only within the region but also globally. This is fundamentally important. Azerbaijan's economy is evolving beyond its traditional dependence on the energy sector.
From the outside, Azerbaijan may still appear to be primarily an energy economy. However, the government's actions—and the way they are perceived internationally—demonstrate an ambitious effort to diversify beyond energy. These efforts are becoming increasingly visible. Azerbaijan is a country focused on the future and innovation, with the potential to play a global role in advancing innovation.
The country is becoming increasingly prominent on the international stage and is embracing the global transformations taking place around the world.
On Azerbaijan's Distinctive Market Features and Key Opportunities
One of Azerbaijan's distinguishing characteristics is that decisions are made based on a clear understanding of the issue and the scale of the challenge, rather than being driven by market pressure or short-term conditions. This is why Azerbaijan demonstrates strong political commitment to maintaining high business standards, including technical regulations.
This is particularly evident in the country's approach to standardization. A good example is the government's program to harmonize national standards with international requirements, which serves as the foundation for the 2021–2028 national standardization improvement plan. The implementation of this plan is already underway. It provides significant support for businesses seeking to drive transformation and innovation more quickly, without unnecessary delays.
Another distinctive feature of Azerbaijan's legislative process is that proposed regulatory changes are subject to public consultation before being adopted. This is extremely important because it allows the business community to participate in discussions and jointly examine why a particular regulation should be introduced.
These discussions are conducted openly, with participation from businesses and support from business associations and professional communities. We sincerely welcome this inclusive decision-making process. It appears to create outcomes that benefit all stakeholders and reflects the practices of many of the world's most advanced economies.
On Regulatory Frameworks and Science-Based Innovation
Science-based innovation means smart innovation. It is built on the principle that different products present different levels of risk and should be evaluated accordingly as scientific evidence evolves. This means product regulation should be grounded in science, rather than treating all product categories the same. This approach has already been adopted in many leading countries, including Sweden and several others.
I believe that effective regulation—meaning regulation that is proportionate to risk—drives progress. It enables people to access scientifically substantiated, non-misleading information, which is increasingly important in a world saturated with information from countless sources. People need to trust regulatory systems and public policy. Regulation should create an environment that supports consumer education and communication about the differences between products. Society's demand for this is growing.
Azerbaijan has already established a process for developing its regulatory framework. I believe the country is on the path toward creating an appropriate regulatory environment because decisions here are based on science and evidence. This is important not only in our industry but across many sectors.
The second key element is predictability. Predictability encourages investment, and it has two components. Sound regulation is essential, but it must also be stable and predictable over the long term in order to support investment. Investments in this category are substantial. Clear and consistent regulatory policies always enable companies to bring breakthrough and innovative products to market more quickly.
We are no longer alone in this category. Today, other companies are active in the market as well. Ten years ago, when we started, we were virtually alone, and few believed it was possible to change the situation by offering smokers scientifically substantiated alternatives with the potential to reduce harm. Today, many companies are moving in the same direction, and we are pleased that this transformation is continuing because it has the potential to make a greater positive contribution to public health, the workforce, and society as a whole.
On Protecting Minors
When it comes to minors' access to our products, our policy is one of zero tolerance. Young people should have absolutely no access to products intended exclusively for adult smokers.
That is why we have implemented a strict internal corporate policy that, in many respects, goes beyond national legal requirements. It is supported by a robust age-verification system across both retail outlets and digital sales channels, helping ensure that minors cannot purchase or access these products. As a global international company, we take this responsibility extremely seriously.
Our zero-tolerance approach includes rigorous commercial practices such as age verification, retailer training, and contractual obligations for distributors and business partners to prevent sales to minors in both physical and digital channels. In addition, we conduct continuous monitoring and enforcement through daily internal compliance checks, regular audits, and clear consequences for violations. These measures help ensure that our standards are consistently upheld in practice.
Cooperation is the key. Cooperation with governments, civil society, and other industry participants is essential because effective youth access prevention programs require coordinated action involving regulators and society as a whole.
Strict youth access controls and zero tolerance are non-negotiable. Products intended for adult smokers must never be accessible to minors. At the same time, adult smokers should have access to scientifically substantiated information that enables them to make informed decisions—whether to quit smoking and nicotine altogether or, if they continue using nicotine, to switch to less harmful alternatives.
On Choosing Baku as the Host City for Technovation
If you look at Baku today, it is a very different city. Baku has
become increasingly visible around the world. Even today, for
example, Japanese Netflix viewers are discovering the city. More
broadly, Baku has evolved into a venue for international business
and public dialogue, extending far beyond the regional level.
The city has already hosted several major international events,
including COP29, Baku Energy Week, and the UN World Urban Forum,
and I believe many more significant events lie ahead.
I asked myself, "Why not Baku?" It offers a welcoming environment for discussing important issues. So we decided to bring Technovation here. Previously, the forum had been held in Washington, Stockholm, Abu Dhabi, and Dubai. Now, it has also come to Baku.
I am genuinely proud of how much more visible Baku and Azerbaijan have become, both regionally and globally, compared with just a few years ago. There is a culture here that embraces innovation, and we are pleased to be part of it and to continue supporting these efforts.
